A daily wrap up on the market, which will keep you updated on what happened in the day and what to expect & news to watch out for the next trading session

1st November: 2 mins Nifty wrap up of the day by GEPL CAPITAL

NIFTY remains little changed, once again above the 8600 mark; even as stock specific movement is flavor of the day. 8680-8720 on the upside still elusive …  The NIFTY opened @ 8653.15, marginally UP by around 10 points over the Muhurat day, Sunday. The first hour & half saw NIFTY drifting down to test the SUPPORTS @ 8600, though this time they respected it. The market moved UP in a steady recline till 2 PM as it targeted the 8680 mark (day HIGH 8669). However the boat failed to sail through as once again the NIFTY created day’s LOW around the 8615 mark, before shutting shop little changed @ 8626.25 UP by 0.55 points or 0.01%.  The statistics that the market is providing is largely inconclusive. After having a take at the barrier of 8680-8720, the NIFTY has faltered and lost ground multiple number of times. That brings the SUPPORT of 8550-8500 on the anvil. Price-Wise, the momentum may once again shift in favor of the BEARS if the level of 8500 is breached in next few days. On the other hand, 8740 (an extension of the 8680-8720 mark) stands as a major hurdle in the short term. The medium term picture may DIP from current SIDEWAYS to BEARISH with a DROP below the 8420 mark. News Wrap of the day  Sensex, Nifty off day’s high; Axis Bank, ICICI under pressure Equity benchmarks came off day’s high in last hour of trade following correction in European peers. Axis Bank fell more than 2 percent and ICICI Bank turned lower.  Manufacturing activity growth at 22-month high. PMI rises to 54.4 in October from 52.1 in September, indicating robust improvement in manufacturing business conditions  BGR Energy gets Rs 2,600-crore project for 800 Mw pant in TN. With this order, the company’s order book at present stands at around Rs 7,429 crore  Maruti Suzuki sales decline marginally in October. Exports during the month declined by 23.7% to 10,029 units as compared to 13,146 units in October last year  S Ramadorai resigns from NSDA, likely to head Tata Sons: Report. Ramadorai is also the Chairman of Tata Institute of Social Sciences, AirAsia India and BSE

A daily wrap up on the market, which will keep you updated on what happened in the day and what to expect & news to watch out for the next trading session

Nifty resumes decline, we maintain the target of 5800

The BSE Sensex fell 1.25 percent to 20,193.35 points, while Nifty slumped by 1.36% to end at 6001.1. Cipla and Coal India slumped following disappointing earnings, while other blue chips tracked their lower global counterparts. Cipla Ltd slumped nearly 8 percent, while Coal India fell 3.3 percent. Hindalco Industries, reported a 23 percent decline in third quarter consolidated net profit. The company attributed fall in profitability to higher effective tax rate for the quarter. Weakness in Asia and Europe dragged domestic benchmark share indices to their day’s lows in late noon trades with private banks and capital goods shares leading the decline. Asian markets retreated from their recent highs as investors turned cautious booked profits after gains in the previous five straight sessions.

Technical Wrap

Nifty reacted sharply and ended the day with a loss of 82 points at 6001. It appears to have resumed its decline and we maintain the target of 5800 for the index as long as it now trades below the level of 6130. The bearish trend may accelerate in coming sessions and Nifty may retest the recent low of 5933 and below that we have a bearish target of 5767 to 5700 range where some support may be seen after this slide gets over. In the interim we do not recommend going long and even in case the level of 6100 is breached the maximum upside may still be limited to 6200 and the sell off may resume yet again as on a positional basis Nifty has formed bearish structures which have very negative implication for near term

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A daily wrap up on the market, which will keep you updated on what happened in the day and what to expect & news to watch out for the next trading session

Nifty likely to correct from under 6130 to 6170 range

It was yet another range-bound, positive session for Indian markets today. Global markets reacted positively to Janet Yellen taking over the chief’s job at Federal Reserve. Yellen said the central bank plans to continue easing its stimulus program, adding it would take a notable change in economic data for the Fed to change its plans. The Railway Ministry presented its last Railway Budget before General Elections of 2014. There were no major surprises in the Budget announcement. Among major announcements that Kharge made was the inclusion of the north-eastern states of Meghalaya and Arunachal Pradesh on the railway map by FY 2015, which until now enjoy very low connectivity. The rail minister also announced the completion of the 11.2-kilometre-long Banihal -Qazigund rail link in Jammu & Kashmir. Railway stocks fell after the Budget as there was hardly anything special for them in the Budget; namely, TITAGARH WAGONS (-0.81), KALINDEE RAIL NIRMAN (ENGINEERS) (-0.98%) and TEXMACO RAIL & ENGINEERING (-3.72%). Among SENSEX stocks, TATA STEEL (-4.09%) was the biggest loser as concerns about its increasing debt mounted. Company’s consolidated net debt rose to Rs70,129cr in Q3FY14; almost double its Q3FY14 revenues of Rs36,736cr. ICICI BANK (+3.11%) was the biggest SENSEX gainer. Markets would keenly watch IIP and CPI numbers at 5:30pm today to get cues about next RBI policy direction. NIFTY and SENSEX closed the day 0.35% and 0.42% higher

Technical Wrap

Nifty ended the day with a gain of 21 points at 6084. It almost tested the resistance of 6110 and is now approaching a stiff resistance range of 6130 to 6170. We recommend exiting from any pending stuck up long positions near present levels. Any upside from here on my possibly be short lived and selling pressure may resume. On the lower side the level of 6030 is the immediate support and a reversal level for the immediate term. A move below 6030 would indicate the start of a decline. On a breach of 6030 Nifty may retest the recent lows of 5933 and below that 5800 is a possibility on a positional basis. The bearish trend would persist as long as 6265 is not conquered on the upside

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A daily wrap up on the market, which will keep you updated on what happened in the day and what to expect & news to watch out for the next trading session

Nifty may possibly test 6110-6130 range in this corrective up move. Sell-off may resume below 6030 in case the upside bounce gets truncated

It was a range-bound trading session yet again for NIFTY which ended with minor gains on abysmally low volumes. A good set of trade data failed to give any positive boost to the market. Exports increased 3.79% YoY to $26.75bn in January while imports declined 18.07% YoY to $36.67bn. Trade deficit narrowed to $9.92bn in January versus $10.14bn in December; helped by a 77% drop in gold and silver imports. Among SENSEX stocks, Dr. Reddy’s reported a 23.3% growth in Net Sales to Rs35.34bn while EBITDA Margin rose 890bps YoY to 29.5%. PAT was up 70% YoY at Rs6.18bn boosted by 76% YoY growth in revenues from North America. Despite these stellar numbers, the stock closed with losses of 0.42%. At the time of writing this article, TATA STEEL (+2.43%) was yet to announce its Q3FY14 numbers. NASSCOM has predicted robust growth for India’s IT sector. It expects IT outsourcing sector to grow 13% – 15% in FY15 versus 13% growth that it had guided for FY14. TATA MOTORS (+2.83%) was the best performing SENSEX stock on back of robust Q3FY14 numbers and improvement in JLR’s performance. Two key macro announcements are scheduled for tomorrow that will decide future direction for market and RBI policy. IIP for December is expected (Bloomberg consensus) to be (-1.1%) versus (-2.1%) in the previous month. CPI for January is expected (Bloomberg consensus) to be 9.20% versus 9.87% in the previous month. Both these announcements are at 5.30pm tomorrow. Among broader indices, BSE POWER (-1.02%) was worst performer while BSE IT (+0.99%) was best performer. NIFTY and SENSEX closed the day with marginal gains of 0.15% and 0.14% respectively.

Technical Wrap

Nifty ended the day with marginal gains of 9 points at 6062. It is presently in a counter trend bounce back and may possibly test 6110 to 6130 range, in case of extreme bullishness there is also a possibility of 6170 level being tested which is a very stiff resistance for the index. However the up move may be short-lived and the selling pressure may resume. On the lower side the level of 6030 is the immediate support and a reversal level for the immediate term. A move below 6030 would indicate the start of a decline. On a breach of 6030 Nifty may retest the recent lows of 5933 and below that 5800 is a possibility on a positional basis. The bearish trend would persist as long as 6265 is not conquered on the upside

Disclaimer: “This message is for the named addressees’ use only. It may contain confidential, proprietary or legally privileged information. If you receive this message by error, please immediately delete it. You must not, directly or indirectly, use, disclose, distribute, print, or copy any part of this message if you are not the intended recipient. Unless otherwise stated, any commercial information given in this message does not constitute an offer to deal on any terms quoted. Any reference to the terms of executed transactions should be treated as preliminary only and subject to our formal written confirmation. The transmission and content of this E-mail cannot be guaranteed to be secure or error-free. Therefore, we cannot represent that the information in this E-mails complete, accurate, uncorrupted, timely or free of viruses and GEPL Capital & its group of companies cannot accept any liability for E-mails that have been altered in the course of delivery.”

Disclaimer: “This message is for the named addressees’ use only. It may contain confidential, proprietary or legally privileged information. If you receive this message by error, please immediately delete it. You must not, directly or indirectly, use, disclose, distribute, print, or copy any part of this message if you are not the intended recipient. Unless otherwise stated, any commercial information given in this message does not constitute an offer to deal on any terms quoted. Any reference to the terms of executed transactions should be treated as preliminary only and subject to our formal written confirmation. The transmission and content of this E-mail cannot be guaranteed to be secure or error-free. Therefore, we cannot represent that the information in this E-mails complete, accurate, uncorrupted, timely or free of viruses and GEPL Capital & its group of companies cannot accept any liability for E-mails that have been altered in the course of delivery.”